- (1.) Heard learned Standing Counsel for the revisionist and Sri Ashok Kumar, Advocate, for Assessee.
(2.) M/s Rotomack Finance Private Ltd. with its office at 201, City Center, 62/2, the Mall Kanpur (hereinafter referred to as "dealer") entered into an agreement on 29.02.1996 with M/s M.M. Plastics Private Ltd. for transfer of right to use certain machines. The dealer for discharge of his contractual obligation imported certain machines for M/s Mafat Lal Micro Machin Ahamdabad and leased out the same to M/s M.M. Plastics Private Ltd., on a quarterly lease rent of Rs.545837/-. In the assessment year 1999-00 dealer received Rs.2210640/- towards lease rent. It claimed exemption from tax on the aforesaid amount/rent under Section 3F of the Central Sales Tax Act, 1956 (hereinafter referred to as "Act 1956"). The assessing authority took the view that the contract for transfer of right to use machines was executed at Kanpur, which is a separate transaction, and import of machine from outside of the State is a separate transaction. The dealer transferred the machine with right to use the same at Kanpur on a lease rent of Rs.5457837/- per quarter, which being independent transaction is taxable under Section 3F of Act, 1956. The assessing authority accordingly determined the tax liability to Rs.109167.40 vide order dated 18.03.2002.
(3.) The dealer preferred Appeal No. of 2002 which was dismissed by Joint Commissioner (Appeal) II, Trade Tax, kanpur vide order dated 27.08.2003. Aggrieved thereto, it preferred Second Appeal No.476 of 2003 before Trade Tax Tribunal, Kanpur Bench, First Kanpur (for short "Tribunal"). The Tribunal has allowed appeal vide order dated 09.12.2004, hence Revenue has come in this revision.;